How Do You Calculate The Value Of Cash Back Rewards?

Discussion in 'Blogstand' started by BoardingArea, Apr 27, 2015.  |  Print Topic

  1. BoardingArea

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    I know that seems like a pretty straightforward question. For example, the Barclaycard Arrival Plus™ World Elite MasterCard® is arguably the best cash back travel rewards card, as it accrues two miles per dollar spent, plus a 10% refund when you redeem miles. Each mile is worth a cent. So you're getting a return of ~2.22% on spend... or are you? This is a discussion I started having with reader Mike by email last week, after American Express announced that as of July 1, 2015, they're adding a 30% rebate to their "Pay With Points" option on The Business Platinum Card® from American Express OPEN. Each point ordinarily gets you 1.0 cent per point towards the cost of airfare, so with a 30% rebate that's the equivalent of ~1.43 cents per point towards the cost of airfare. That's not a horrible value, though ultimately I'd still rather convert miles to one of American Express' airline transfer partners than redeem them for ~1.43 cents each. The post How Do You Calculate The Value Of Cash Back Rewards? appeared first on One Mile at a Time.

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